Antonio Carlos Ruiz SoriaDirector, Economia Creativa

Applying Creativity to UF Business Modelling in the New Reality

21 January, 2021

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OutlineWhy creativity for urban farming (UF)? Creativity and UF business modelling.

Innovative funding and activities to increase alternative funding. Case studies.

Criteria & indicators for identification of successful business models and their impact to SDGs.

Conclusion.

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Why Creativity for UF? Creativity, Design and UF Business Modelling.

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Covid19 disruption in food supply provides a huge opportunity for UF

Covid19 disruptions in the food supply and food logistics (according to FAO Investment Centre Director Mohamed Manssouri):

▪ Restrictions on movement ▪ Quarantines ▪ Trade barriers ▪ Shipping delays have disrupted food supply chains, trade and logistics,

with food supply chains in developing countries disproportionately affected

This set the ground for UF to provide food security and resilient supply chain in the face of uncertainty and (future) crises → Creativity is crucial to transform this potential into real opportunity.

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Why Creativity for UF?

We are in the midst of an evolutionary shift toward Creative Societies -> This has implication into UF Business Models & Innovative Funding

Covid19 disruptions in the food supply and food logistics demands disruptive and innovative approaches to food security

Climate change and SDGs.

-> Creativity and digitization are crucial for crafting agile and effective solutions.

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Mapping Creativity in the EUThe role of Human Development, Digitization and Sustainability, Publication (april 2020):

▪ Constructed a creativity in Workplaces Index and Creative Society Index for EU28 (incl. UK)

▪ Analized more than 25 socioeconomic, business, digitization and sustainability indicators

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Mapping Creativity in the EU : at a glance

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UF can contribute to enhance different pillars of the Creative Society Index: Neibourhood vibrancy, active living, participation in society, boosting economy, etc.

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Creative societies represent an ‘evolutionary shift’ centred in creative citizens & sustainable living (UF are -or can be- a key driver). Covid 19 is accelerating this transition.

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The creativity mapping performed has identified four stages in the development toward creative societies. In the countries with higher CSI, it can be expected more awareness about UF.

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As an example, we compare UF models from two cities from countries with strong CSI / moderate - CSI:

Ghent - Belgium (Strong Creative Society Index)

Warsaw - Poland (Moderate - Creative Society Index)

● Urban land and space is limited● The city has a stated goal to make itself

climate neutral by 2050● Socio-ecological problems are high on

the policy agenda● Strong municipal government support

for UA● Idea of local food is popular and there

is broad support for gardening projects in public spaces

● Dynamic network supports multiple UA initiatives

● UA has not been adopted either in Polish agricultural policy or in the spatial development policy of Polish cities

● Spatial policy in Warsaw may facilitate the conversion of agricultural land into other uses

● 28 % of Warsaw is categorised as green areas

● Investors keen to build residential or service areas

● Absence of local government support for UA

Data source: EPRS adaptation from C. Prové et al., 2016, pp. 16-26.Retrieved from: Urban agriculture in Europe, Patterns, challenges and policies, European Parliamentary Research Service, 2017; Highlights are mine.CSI: own elaboration, Mapping Creativity in the Euroopean Union, Antonio Carlos Ruiz Soria - Economia Creativa 2020

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Human Development, Digitization and Sustainability, the forces shaping Creative Societies, are essential features for UF business modelling

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Urban Farms as creative organizations with business models centred in creative citizens-creative sustainability, can play a key role into reconfiguring the way we live (produce food-eat), work and the very idea of citizenship in European cities.

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Urban Farming is a key driver of Creative Societies, shaping the New Reality

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Innovative funding and activities to increase alternative funding

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Urban Farms can optimize funding with a multi-stakeholder and dynamic approach centred in diversification, differentiation and UX -> creativity-digitization-sustainability

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Routes to Innovative Funding for UF Startups

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Raising awareness of the benefits UF across multiple stakeholders (understanding their different interfaces with / and interest in UF) is the base for successful and innovative funding strategies.

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In which stage of the Startup Funding Cycle is your UF project?

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Disruptive business models based in subscriptions -participation: The case of Peas & Love (Paris-Brussels)

Participate in the Change My vegetable garden, managed by a pro

I harvest and I enjoy

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Peas&Love business model is centred in creative citizens

Being a Peas & Lover is ...▪ Have your own maintained vegetable garden▪ Harvest delicious local vegetables▪ Join an engaged community▪ Learn about our beautiful nature▪ Participate in workshops on the farm▪ Express and share your values▪ Eat healthier and in season▪ Adopt a more responsible diet (SDGs)

Retrieve from Peas & Love website - () added

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iFarm, a Finish startup that provides innovative solutions for growing fresh greens, berries and vegetables, founded in 2017 in Helsinki.

iFarm has raised around €3.3 million in funding.

▪ The round was led by Gagarin Capital, who also previously invested in the project. Other investors include Matrix Capital, Impulse VC, IMI.VC and several business angels.

▪ iFarm has over 50 on-going projects with clients in Europe and the Middle East for 2020. That includes an industrial vertical farm based on iFarm’s tech Its construction was funded through the company’s internal crowdfunding platform.

▪ “Investors can participate in the worldwide network of vertical farms and receive a rate of return well above bank deposit rates”, says Alex Lyskovsky, co-founder and President of iFarm.

Source: https://www.eu-startups.com/2020/08/helsinki-based-ifarm-raises-e3-3-million-for-automated-indoor-farming/

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Infarm based in Berlin, is one of the largest urban vertical farming network in the world. It is funded with a mix of equity and debt.

In 2020, in the midst of covid pandemic, infarm has formed new partnerships with the world’s largest retailers

▪ Including Albert Heijn (Netherlands), Aldi Süd (Germany), COOP/Irma (Denmark), Empire Company Ltd (Sobeys, Safeway, Thrifty Foods – Canada), Kinokuniya (Japan), Kroger (United States), Marks & Spencer (United Kingdom) and Selfridges (United Kingdom).

▪ Erez Galonska, Co-founder and CEO of Infarm said: “The coronavirus pandemic has put a global spotlight on the urgent agricultural and ecological challenges of our time. At Infarm, we believe there’s a better, healthier way to feed our cities: increasing access to fresh, pure, sustainable produce, grown as close as possible to people.

Source: https://www.eu-startups.com/2020/09/berlin-based-infarm-raises-e144-million-during-pandemic-to-grow-largest-urban-vertical-farming-network-in-the-world/ Image: InFarm website

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Criteria & indicators for identification of successful business models and their impact to SDGs.

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UF innovative business models can contribute to SDGs in three key dimensions: economic, social and sustainability.

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The SDGs provide a common denominator to showcase the impact and relevance of UF in the New Reality.

Aligning UF key performance indicators to the SDGs can set the ground for partnerships with multinational corporations and engaging with policy makers at different government levels and Civil Society Organizations.

In particular, The UN Sustainable Development Goals (SDGS) have highlighted the importance of agriculture and sustainable cities in SDG target 11.3, “countries should aim to work to enhance inclusive and sustainable urbanization for participatory, integrated, and sustainable human settlement planning and management in all countries”.

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Conclusion

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Conclusion

Creative societies represent an ‘evolutionary shift’ -accelerated by Covid19- centred in creative citizens & sustainable living. UF are a key driver to reconfigure the way we live (produce and consume food), work and the idea of citizenship.

Covid19 disruption in food supply provides a huge opportunity for UF. Creativity is crucial for UF to transform this opportunity into a reality.

UF can optimize funding with a multi -stakeholder and dynamic approach centred in diversification, differentiation and UX, in the frame of the SDGs.

Project smedia

Thank you!

Questions welcome